Ganado Europe (C). Using facts in the chapter for Ganado Europe, assume the exchange rate on January 2, 2016, in Exhibit 11.5 appreciated from $1.2200/ to $1.5700/. Calculate Ganado Europe's translated balance sheet for January 2, 2016, with the new exchange rate using the current rate method as shown in the popup window, LOADING... . a. What is the amount of translation gain or loss? b. Where should it appear in the financial statements? a. What is the amount of translation gain or loss? Enter a positive number for a gain and negative for a loss.

EXHIBIT 11.5 Ganado Europe's Translation Loss After Depreciation of the Euro: Current Rate Method
					December 31, 2015						January 2, 2016
Assets		In Euros ()			Exchange Rate (US$/euro)			Translated Accounts (US$)			Exchange Rate (US$/euro)			Translated Accounts (US$)
Cash		1,700,000			1.2200			$2,074,000			1.5700			$2,669,000
Accounts receivable		2,700,000			1.2200			3,294,000			1.5700			4,239,000
Inventory		2,100,000			1.2200			2,562,000			1.5700			3,297,000
Net plant and equipment		5,300,000			1.2200			6,466,000			1.5700			8,321,000
Total		11,800,000						$14,396,000						$18,526,000
Liabilities and Net Worth
Accounts payable		800,000			1.2200			$976,000			1.5700			$1,256,000
Short-term bank debt		1,300,000			1.2200			1,586,000			1.5700			2,041,000
Long-term debt		1,800,000			1.2200			2,196,000			1.5700			2,826,000
Common stock		2,100,000			1.2730			2,673,300			1.2730			2,673,300
Retained earnings		5,800,000			1.2200	(a)		7,076,000			1.2200	(b)		7,076,000
Translation adjustment (CTA)								(111,300)						2,653,700
Total		11,800,000						$14,396,000						$18,526,000
(a) Dollar retained earnings before de